Investors lose Rs 6.9 lakh crore after after central bank hikes repo rate

Indian equity benchmark indices lost over 2 percent on Wednesday after the Reserve Bank of India in a surprise move raised repo rates by 40 basis points to 4.40 percent. At the close, the 30-scrip Sensex was down 1,306.96 points or 2.29 percent at 55,669.03, and the broader Nifty50 was down 391.50 points or 2.29 percent at 16,677.60. About 825 shares have advanced, 2,454 shares declined, and 98 shares are unchanged. In an unscheduled address, RBI Governor Shaktikanta Das announced that the monetary policy committee (MPC) has unanimously voted to increase the repo rate by 40 bps, adding that the central bank's stance remains accommodative.

Among major Nifty losers were Apollo Hospitals, Adani Ports, Hindalco Industries, Bajaj Finance and Bajaj Finserv. Investors lost Rs 6.9 lakh crore in wealth as the market capitalisation of BSE-listed companies dropped to Rs 259 lakh crore, according to provisional exchange data. ONGC, Britannia Industries, Power Grid Corporation, NTPC and Kotak Mahindra Bank were among the major gainers. All the sectoral indices ended in the red with auto, bank, FMCG, power, metal, realty, healthcare, and capital goods indices down 1-3 percent. BSE midcap index shed 2.63 percent and the smallcap index fell 2.11 percent.